Preparing for retirement just got a little more financial wiggle room. This week, the Internal Revenue Service (IRS) announced new 2022 retirement contribution limits.
Staying put for 2022 are traditional Individual Retirement Accounts (IRAs), with the limit remaining at $6,000. The catch-up contribution for traditional IRAs remains $1,000 as well.1
For workplace retirement accounts (i.e. 401(k), 403(b), amongst others), the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.1
Eligibility for Roth IRA contributions has increased, as well. These have bumped up to $129,000 to $144,000 for single filers and heads of households, and $204,000 to $214,000 for those filing jointly as married couples.1
Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which increases from $13,500 to $14,000.1
If these increases apply to your retirement strategy, you may want to make some adjustments to your contributions. Please contact us if you have any questions about how the 2022 contribution limits may affect your retirement strategy or if you would like to start retirement planning with us.